Microvast 2025 Q3 Earnings Record Revenue Growth Amid Net Loss Deterioration

Microvast Holdings (NASDAQ:MVST) reported mixed Q3 2025 results, with revenue exceeding estimates but EPS falling short. The company reaffirmed its revenue guidance while raising full-year gross margin expectations, signaling confidence in operational improvements and capacity expansion.

Revenue

Microvast’s total revenue surged 21.6% year-over-year to $123.29 million in Q3 2025, outpacing the $120.02 million consensus. This marked a new quarterly record, driven by robust demand in the European and U.S. markets. Year-to-date revenue reached $331.1 million, reflecting 24.3% growth.

Earnings/Net Income

The company maintained stable non-GAAP EPS at $0.04, below the $0.05 estimate. However, GAAP net loss widened to $1.5 million, a 111.2% deterioration from the $13.25 million profit in Q3 2024. Adjusted EBITDA, at $21.9 million, underscored operational efficiency gains. Despite stable EPS, the significant net loss highlights ongoing profitability challenges.

Post-Earnings Price Action Review

Following the report, Microvast’s stock faced mixed reactions. Shares dropped 3.76% on the earnings day, with a 10.04% decline over the subsequent week. However, the stock rebounded 3.46% month-to-date, reflecting investor uncertainty amid the earnings miss and optimism about long-term growth prospects. The mixed sentiment aligns with broader market skepticism about the company’s ability to sustain profitability while scaling operations.

CEO Commentary

CEO Yang Wu emphasized “tangible results of our focus on profitability and operational excellence,” citing a 37.6% gross margin (up 4.4 percentage points YoY) and record revenue. Strategic priorities include completing Huzhou Phase 3.2 expansion to boost capacity and securing new partnerships, such as the SKODA Group collaboration for rail applications.

Guidance

Microvast reaffirmed its 2025 revenue target of $450–$475 million (18–25% YoY growth) and raised full-year gross margin expectations to 32–35%. The company anticipates completing Huzhou Phase 3.2 by year-end to meet rising demand while maintaining operational discipline.

Additional News

Recent institutional activity highlighted growing investor interest. BlackRock added 8.77 million shares (+164%), Morgan Stanley increased holdings by 805.2%, and Geode Capital Management boosted its stake by 117.3%. Additionally, Microvast announced a partnership with SKODA Group for high-safety rail battery systems, validating its technology in extreme-duty applications. The company also appointed Carl T. “Pat” Schultz as CFO, bringing over two decades of financial leadership experience from Air Liquide and Genworth Financial.

Microvast’s Q3 results reflect a delicate balance between top-line momentum and bottom-line pressures. While revenue growth and margin expansion signal operational progress, the GAAP net loss underscores the need for continued cost management. Institutional investments and strategic partnerships, including the SKODA deal, suggest confidence in the company’s long-term potential, particularly in electrification and energy storage markets. With Huzhou Phase 3.2 nearing completion, Microvast aims to solidify its production capacity and diversify its customer base to sustain growth.